Yesterday, the Huffington Post reported that last quarter late payments on credit card balances fell to their lowest level in 15 years. This is good news for credit card companies and it could also bode well for investors in peer to peer lending.
Here is an excerpt from the article:
Nationwide, the rate of payments 90 days or more past due on bank-issued cards dropped to 0.74 percent in the first quarter, down from 1.11 percent a year ago.
The delinquency rate is the lowest level since the third quarter of 1996, TransUnion said. It peaked in the first quarter of 2009 at 1.32 percent.
So, we have the rate of delinquent credit cards dropping significantly from 1.32% in 2009 down to 0.74% today. This is despite continued high unemployment and an economy that is growing at an anemic pace. It seems that in general people are more conscious of their debt now than in a long time. [Read more…]